Company Announcements

Zotefoams plc

("Zotefoams" or "Group")

Zotefoams and Shincell Global Alliance

7 May 2024 - Zotefoams, a world leader in cellular materials, announces that it has signed a Global Alliance Agreement with Suzhou Shincell New Materials Co., Ltd ("Shincell") of Suzhou, China.

Shincell and Zotefoams are industry-leading foaming companies with complementary technology and market interests. This global alliance matches Zotefoams' 100-year history in nitrogen-expanded foams with Shincell's latest innovations in foaming technology. 

Shincell, based in Suzhou, China, was founded in 2019 by Dr Xiulei Jiang, who has over 20 years' experience in physical-gas foaming research and technology. Shincell is a company dedicated to developing sustainable foaming technologies and manufacturing clean, environmentally friendly lightweight foam materials. The company uses nitrogen and carbon dioxide gases commonly found in the air to expand plastics and form a large number of micro and nano bubbles inside, a purely physical foaming process.

The alliance consists of agreements on technology licensing from Shincell to Zotefoams, development and market co-operation, and regional product distribution agreements, where certain products from Shincell's unique technology will be marketed alongside Zotefoams' existing and future product range. With a shared commitment to sustainability and innovation, the two companies will co-operate on product development and are confident that this alliance is a significant step forward for the foaming industry.

Shincell's complementary technologies extend Zotefoams technical capability, enabling a wider scope of products in both new and existing markets and enhancing the Group's technology platform for new products to deliver growth.

Zotefoams will pay technology licensing fees of RMB 80million (approx. £9m, including capitalised deal costs*) over the 5-year term of the agreement, which will support the further development of the technology and Shincell business.

Dr Jiang, Shincell CEO, comments, "This alliance is a great example of combining cutting edge foaming technology and global marketing expertise to not only enhance innovation efficiency but push environmental awareness to a higher level. We are very optimistic that the collaboration with Zotefoams will bear more sustainable fruits."

David Stirling, Zotefoams Group CEO, comments, "I am very impressed by Dr Jiang and the technology developed by his Shincell company. Their goal of environmentally friendly foaming using physical blowing agents aligns perfectly with Zotefoams' vision and markets. This alliance is an exciting opportunity to enhance the growth potential of our specialist foams business with sustainable solutions."

* Zotefoams policy for amortisation of technology-related intangible assets can be found in Note 2.(vi) of the 2023 Annual Report

-ENDS-

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About Zotefoams plc

Zotefoams plc (LSE - ZTF) is a world leader in cellular materials technology delivering optimal material solutions for the benefit of society. Utilising a variety of unique manufacturing processes, including environmentally friendly nitrogen expansion for lightweight AZOTE^® polyolefin and ZOTEK^® high-performance foams, Zotefoams sells to diverse markets worldwide. Zotefoams uses its own cellular materials to manufacture T-FIT^® advanced insulation for demanding industrial markets. Zotefoams also owns and licenses patented microcellular foam technology to reduce plastic use in extrusion applications and for ReZorce^® mono-material recyclable barrier packaging.

Zotefoams is headquartered in Croydon, UK, with additional manufacturing sites in Kentucky, USA and Brzeg, Poland (foam manufacture), Oklahoma, USA (foam products manufacture and conversion), Massachusetts, USA and Stilling, Denmark (microcellular foam technology) and Jiangsu Province, China (T-FIT).

www.zotefoams.com

AZOTE^®, ZOTEK^®, ReZorce^® and T-FIT^® are registered trademarks of Zotefoams plc.